My musings on the economy, life, technology, business and things I find interesting.

Thursday, September 25, 2008

Extracting a Pound of Flesh

I've been a fan of Warren Buffet for a long time, the old hawk is an expert at extracting value from these types of times. I continue to invest in Berkshire and it's worked out well. Fairfax Financial is another favorite, Perm Watsa has been predicting these times for a while and despite Mr Market trying to pull him down, they keep rolling in the profits, again Fairfax has been nice to me. The recent moves, and Mr Markets idiotic evaluation of their share price have been a recipe for success.

I like an analyst when his top pick is, wait for it, cash, that's right, cold hard cash, followed by the simple explanation that it's a great thing to have when markets are in turmoil. Yes please, bring on the deals. So many people I talk to are just sitting around waiting to take advantage of the upcoming deflation.

I'm doing okay, likely better than every mutual fund in existence, I am grateful for it.   Investments all round are up: real estate, private financing, developments and equities. At this point we're majority in cash, almost everything has been liquidated at favorable pricing. We could see a nice pop with the bailout going through and I've got an angle on that, but cash is king.

I've been quiet on my blog because things have just been so ridiculous of late. You really have to be nimble, it's ridiculous with the volatility. This morning GE bonds maturing in a year had hold to maturity yields of like 8-9%, that's not bad. I'm starting to see some attractive yields in the preferred and bond markets.

Things should be interesting. We're working on a lot more interesting projects now, more breadth to things and lots going on, the undercurrents in the Canadian debt markets are telling.

Interesting times indeed. Be Safe

No comments: